Property Valuation
The principle of contribution in Missouri appraisal states that:
AAll improvements add value equal to their cost
BAn improvement's value is measured by how much it adds to the property's overall market value✓ Correct
CLand always contributes more value than improvements
DNew construction always increases value
Explanation
The principle of contribution holds that the value of a component is measured by what its removal would cost in terms of overall property value, not by the cost of the component itself.
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